what is the different between asb loan and asb2 loan??

what I know the % rate is higher for asb2 compare with asb

I have a RM50k loan. Thinking of getting another RM50k. But I wonder if it's possible to 'upgrade' the loan? I mean, part of your monthly payment is for insurance or something right, so no sense to pay double. Thoughts?

I dont think that's possible. When you get the first 50k loan, your insurance is for that 50k. Getting another 50k will require another insurance for that 50k.

By the way, there are banks that offer ASB loan with no insurance, or at least shorter insurance period (e.g. 5 years), try ask around. Unless they already stop the ASB loan and only sell ASB2 loan.

What you said made sense, thanks.

Speaking of insurance, is it even a necessity to get insurance? I went under Maybank and was told it was mandatory. I didn't know other banks offer without insurance.

Which bank offer asb loans without insurance thingy?

Think about it, if you borrow 100k today for 30 years, and some time during the tenure you suffer from death/TPD and defaulted on your loan, the bank could easily resell the certificate for 100k to PNB, and even return you some of the excess money.

The reasons why some banks require mandatory loan is because either:
- they get commissions out of selling the insurance AND
- assuming the borrower suffer from death/TPD some time during the tenure and defaulted, it's true the bank can resell the certificate and get back their money, but the loan will still be considered as a non-performing loan because the best case scenario for the banks is for you to continue paying for 30 years, thus they get to collect maximum amount of interest.

I applied for CIMB LASB in june and was allowed to take a 5-year insurance, you might want to check with them. YMMV though.

Ahaha I had to google YMMV to find out what that meant

Re: was allowed to take 5-year insurance. Were there negotiations involved? To me this sentence implied that the bank begrudgingly allowed you to take 5 year instead of full term.

CIMB ASB interest 5.0 if got offer letter / family link 30yrs.. optional insurance..
affinbank pon macam okay.. 5.2 rate..

Yeah at first the loan officer said a full-term insurance is required, then i mentioned about people who were able to get shorter insurance from CIMB. A few hours later the loan officer called back and said it's ok to take 5-year insurance. So i guess we can say they begrudgingly allowed me to take shorter insurance.

One thing to remember, insurance is not necessarily a bad thing. It's definitely a good thing if you suffer death/TPD during the tenure. But I applied for the ASB loan with the aim to maximize my capital, not protection. I do plan to terminate before the 30-year term is up which means i dont need a full insurance, but even if i ended up not terminating and suffer death/TPD during my unprotected years, i'm fine with it. If my family cant pay for it, i'll just terminate the loan and the bank can resell the cert. In short, i wanted short-medium term profit against long-term protection.

I'm interested in that CIMB 5%/30years/optional insurance plan. What is the offer letter/family link referring to?

affin bank and cimb-i offers lasb without insurance package

if refinance to CIMB from another bank.. offer letter ASB from old loan..
family link tak tau

ask here..
https://www.facebook.com/asbloanterbaik
or
https://www.facebook.com/groups/261420023932547/

so it's confirm there's no ASB loans next year?

or there's some last minutes "extension" given

Extension or better dun happen please

well everyone it to be as usual, but hey asnb need to get asb2 sales up too right

Already quite fast asb2 loan haha

bila nak announce dividen this year..
duit dah habis bayar loan ASB & ASB2..
next year rolling dividen jer..

dengar info kata minggu depan Selasa atau Rabu

lame betul... last year 18 dec ..